Privatized ferries? Gregoire looks for money, budget trims

How much would a business pay to have a rest area along a highway named for itself? We may soon find out.

Facing a likely $3 billion deficit heading into the next budget cycle, Gov. Chris Gregoire is looking for savings anywhere she can find them.

On Thursday, the governor outlined a new budget process she says will challenge departments to save cash and have the private sector take over certain functions. Privatizing the state’s ferry system and selling naming rights to highways or rest stops are some of the options she’s considering.

The state says it would consider privatizing the ferry system to find needed revenue

“We have been navigating our way through some very tough times while the economy slowly improves,” Gregoire said. “I am now looking ahead to the state’s next budget cycle and another sizable shortfall we must address in the 2011–13 budget. We are going to challenge every program in state government with a series of tough questions to ensure we are getting the best value for the most essential functions of state government.”

Gregoire said departments will have to answer these questions during the upcoming budget process:

1. Is the activity an essential service?
2. Does state government have to perform the activity, or can it be provided by others?
3. Can the activity be eliminated or delayed in recessionary times?
4. Does the activity need to be paid for with state general funds? Should users pay a portion of the costs?
5. Are there federal funds or other fund sources available to support this activity?
6. Are there more cost-effective, efficient ways to do the activity?
7. Can the activity be the subject of a performance contract?
8. Can the activity be the subject of a performance incentive?

Lawmakers faced a $2.8 billion deficit during this year’s session, a situation they tackled with a combination of spending cuts and new taxes – including levies on bottled water, soda and candy.